Mortgage Deposits Remain High in UK

April 24th, 2009 by admin · No Comments

It wil come as little surprise to many that overall deposits and down payments required for buying a property are at an all time high. Home buyers who are looking to take out a mortgage to buy a property will discover that they may require up to 30 per cent of the property value as down payment or deposit for the mortgage. This is the highest figure for two years according to a recent study of teh UK property market.

New research by a leading independent property website has published in its report that the average loan-to-value ratio is 71 per cent. This was 82 per cent last year. Property bueysres, especially first-time buyers will face the problem more than anyother group. First time bueyrs will be the worst effected.

Traditionally first time property buyers found the 10% deposit deals to be the most popular. However this year ten per cent deposit mortgage deals have fallen by 84 per in the same period one year ago.

The remortgage market has also been affected and home owners looking for a remortgage deal on their proeprty have also faced an increase in deposit requirements, with an average loan-to-value of 69 per cent, compared to 82 per cent last year.

There are many types of property loans available but overall the lending market has become tougher. In general mortgage lenders are being cautious. There is considerable change in the market needed to change the trend in the housing market gain.

An independent financial advice website has recently reported that, out of the nearly 1,500 mortgages on offer in the past week, nearly 70% were mortgages that require a high deposit from buyers as a precondition for approval.